Aug. 25 (Bloomberg) -- Switzerland’s franc weakened against
the dollar, reversing gains, after Berkshire Hathaway agreed to
invest in Bank of America Corp, reducing concern that another
financial crisis may have been brewing.

The franc pared gains against the euro amid renewed
speculation the Swiss National Bank is not done with its franc-curbing campaign. Bank of America, the biggest U.S. lender, said
Berkshire Hathaway, led by Warren Buffett, will invest $5
billion to bolster the bank whose stocks lost almost half of
their value through yesterday on bets it will need to raise
funds in capital markets.

“Buffett’s investment in Bank of America helps to calm the
market and boosts risk sentiment, and that may have weighed on
the franc,” said Lee Hardman, a currency strategist at Bank of
Tokyo-Mitsubishi UFJ Ltd. in London. “There was also renewed
speculation in the market that the SNB may soon impose new
measures on the franc.”

The franc weakened 0.1 percent to 79.63 centimes per dollar
at 4:21 p.m. in London after appreciating to 79.10 centimes
earlier. It was 0.3 percent stronger against the euro 1.1440
after strengthening to 1.1408. It appreciated 0.5 percent to
97.23 yen.

Switzerland’s currency has strengthened 12 percent this
year, the best performer among a basket of the currencies of 10
developed markets, according to Bloomberg Correlation-Weighted
Currency Indexes.

Global Slowdown

The SNB has introduced a range of measures, including
increasing liquidity in the money market, to curb the currency’s
strength after its appreciation made the nation’s exports less
competitive. The Swiss manufacturers’ association Swissmem said
yesterday the country may face serious economic damage unless a
“clear weakening” of the franc begins soon.

The franc has advanced against all of its 16 major
counterparts in the past three months on signs the global
recovery is losing momentum and the euro-area sovereign debt
crisis is deepening. Greek bonds slumped today, pushing the 10-year yields to a euro-era record as concern mounted that
Finland’s demands for collateral on loans to the Mediterranean
nation will trigger a default.

The Swiss currency has fluctuated between losses and gains
this week as investors weighed whether Federal Reserve Chairman
Ben S. Bernanke will announce further monetary stimulus measures
this week at a symposium tomorrow in Jackson Hole, Wyoming.

Swiss bonds fell. The yield on the 10-year note increased
three basis points to 1.04 percent, while two-year yields were
little changed at minus 0.02 percent.

Swiss government bonds have handed investors a 2.7 percent
return this month, beating a 2.4 percent gain from German bonds,
according to indexes compiled by the European Federation of
Financial Analysts Societies and Bloomberg.